STATEMENT FOR THE RECORD - MICHAEL C. BURGESS

ENERGY AND COMMERCE COMMITTEE

OVERSIGHT & INVESTIGATIONS SUBCOMMITTEE HEARING:

"BP's Pipeline Spills at Prudhoe Bay: What Went Wrong?"

September 7, 2006

Mr. Chairman, thank you for convening this hearing this morning.

Like most of my constituents, I was extremely concerned to learn of the oil spill in Alaska in March of this year. It was the largest spill so far in Alaska and it is my hope that this remains the case.

This spill posed risk to both the environment and to our domestic supply of oil. Luckily, experts believe that there will be no permanent environmental damage from the spill. But we must ensure that pipeline maintenance practices do not jeopardize the environment or expose us to a supply disruption.

While I believe that BP's initial decision in August to shut in the Prudhoe Bay field following the discovery of corrosion was prudent, I am extremely troubled by the fact that this situation could have been prevented.

What is especially troubling is that these transmission pipelines lines had not been pigged, either with a scraping pig or a smart pig, since 1992 or 1998. Pigging is not a new technology, but is a standard industry practice.

BP's failure to conduct this type of routine maintenance put in jeopardy our ability to access the crude oil produced by the entire Prudhoe Bay field.

The Prudhoe Bay field counts for nearly 5% of U.S. domestic production, approximately, 400,000 barrels per day, so the temporary loss of this supply has the potential to significantly impact oil prices.

That makes this a bigger issue than just one company's pipeline maintenance practices.

I am looking forward to hearing from BP about what happened and having the opportunity to question the witnesses appearing before us today.

Thank you, Mr. Speaker, I yield back.